Policy's Beneficiaries of Corporate Governance and Diversification Strategy

Abstract

The present study is highly important because, when used properly, it can lead to an immediate positive impact on organizational management. Therefore it offers the chance to cumulate the interests of all stakeholders of a company, leading it upward. The study pays special attention to prospects for management/diversification/corporate governance in an attempt to provide an objective perspective on the system, highlighting those weaknesses that require intervention. Governance started in Romania, in conceptual terms and regulations, in the early 2000s. The delay is explained by the fact that the political, legal, economic and social realms were developed slowly and difficultly. Recently however, the context of corporate governance in Romania has changed. Accountability and transparency have become key factors not only for shareholders, but also for investors, lenders, suppliers and other parties involved. Good corporate governance adds value and helps reducing the cost of capital, providing effective financing capital from bidders. In this context, it is worth analyzing, based on statistical data, the degree of development of corporate governance in Romania. Indicators are tied to the board's attributes, in particular board structure, size, independence, frequency of meetings and other factors. The source is the official data published by companies listed on the Bucharest Stock Exchange (BVB). The results will be compared with results of other studies conducted in the case of emerging countries and the European average. The relationships between public managers and owners of financial or non-financial interests must be built on the corporate governance principles.